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George buys new computer equipment for $96,000 from his supplier, Super Ace Computers. The financing agreement stipulates annual interest-only payments and equal deposits into a
George buys new computer equipment for $96,000 from his supplier, Super Ace Computers. The financing agreement stipulates annual interest-only payments and equal deposits into a 10-year sinking fund. After 10 years the proceeds of the sinking fund will be used to retire the 96,000 principles. The interest of George's debt is 14.5% compounded annually and interest earned on his sinking fund is 13% compounded annually. What is the annual interest payment to Super Ace?
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